The United States and Iran have agreed in principle to extend a 60-day ceasefire under the Islamabad Memorandum of Understanding, with the current deadline set to expire on August 17, a media report said on Wednesday.

A source close to the mediation process told Turkish news agency Anadolu that both sides had conveyed their consent to mediators to extend the deadline.

“Both sides have conveyed their consent to the mediators to extend the deadline,” the source said.

However, the two countries are still exchanging messages to determine the duration of the extension, the source added.

The United States and Iran agreed to a Pakistan-brokered ceasefire in April and subsequently signed the Islamabad Memorandum of Understanding on June 17, paving the way for negotiations aimed at reaching a broader agreement.

The talks later stalled over disagreements on security guarantees and freedom of navigation through the Strait of Hormuz, a critical route for global energy supplies and international trade.

The latest development comes after the two sides exchanged military strikes between July 8 and July 24.